Aurelia Metals : 2021 Annual Report

DELIVERING VALUE. GROWING RETURNS.

FY21 HIGHLIGHTS

RECORD FINANCIAL OUTCOMES

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Growth in underlying	125 %
NPAT to $57 million

Robust balance sheet underpinning growth projects

OPERATIONAL PERFORMANCE

FY21 production guidance	~10%
achieved or outperformed
Record Au-equivalent	Mill throughputs increased
annual production

SAFETY AND SUSTAINABILITY PERFORMANCE

	58%	Improvement in Reportable	82%
Improvement in Total Recordable	Environmental Incident
Injury Frequency Rate (TRIFR)	Frequency Rate (REIFR)

2  ANNUAL REPORT 2021

FAST PACED GROWTH

63%

Increase in mineral resources across portfolio

Successful acquisition

and integrationNSW of Dargues Mine

CONTENTS

FY21 HIGHLIGHTS	2
Chairman's letter	4
Managing Director's report	5
COMPANY PROFILE	6
The portfolio	8
BUSINESS REVIEW	9
FY22 outlook	12
Strategy progression	14
SUSTAINABILITY	22
MINERAL RESOURCE AND	55
ORE RESERVE STATEMENT
FINANCIAL STATEMENTS	58
Directors' report	60
Operations and financial review	66
Letter from the Chairman of the
Remuneration and Nomination
Committee	84
Remuneration report (audited)	86
Auditor independence declaration	108
Statement of profit or loss and
other comprehensive income	109
Statement of financial position	110
Statement of changes in equity	111
Cashflow statement	112
Notes to financial statements	113
Director's declaration	150
Independent Auditor's report
to the members of Aurelia
Metals Limited	151
SHAREHOLDER	160
INFORMATION
SCHEDULE OF TENEMENT

Drilling program to

DARGUES

INTERESTS

162

expand and extend Federation, Dargues, Kairos and Great Cobar

Hera Mine, NSW

AURELIA METALS  3

CHAIRMAN'S LETTER

Dear Shareholders,

During this extraordinary time for markets and communities around the world, being a trusted, sustainable and positive presence has never been more important. The COVID-19 pandemic, evolved over the past 12 months to present unprecedented challenges for all business, and ours has been no exception. These challenges have spanned border closures and labour supply, service providers and supply chains, as well as trade with China and shipping shortages.

It is against this backdrop that Aurelia continued to build on its reputation of being a disciplined operator, putting safety of our people and communities first, managing risk to create resilience within our business, and executing our organic and inorganic growth strategies to deliver long term returns to our Shareholders.

Aurelia continues to match the very strong geological perspectivity of our assets with a material commitment to exploration. Drilling programs are underway to extend untapped potential at Peak's Kairos orebody, as well as to expand mine life at Dargues.

Aligned with our Vision and Values, we are proud to be accelerating priority

We also continue to work towards implementing and reporting against a GRI framework and managing climate change risks. We value the trusted partnerships we are continuing to grow with Traditional Owners and communities in the areas in which we operate. We are grateful for their support.

FY21 saw our dedicated people go above and beyond in their steadfast

Highlights for the financial year have included:

• 58% decrease in Total Recordable Injury Frequency Rate (TRIFR)
• 82% decrease in total reportable environmental incidents frequency rate (TREIFR)
• 63% increase in Mineral Resources
• growth in our asset base from two to three gold and base metal operations
• record financial performance in FY21 with revenue from operations totalling $416 million, an increase of 26% from the previous year
• Net Profit After Tax of $43 million, representing a 46% improvement on FY20
• maintained our strong balance sheet with $75 million cash in the bank as of 30 June 2021, after repayment of $16 million in debt and cash backing
  of environmental bonds
• reinvestment of $20.6 million in growth capital through exploration and evaluation.

commitment to our business and communities. Many of our leaders, employees and contractors have been separated from families due to border restrictions and have faced hardships that have become hallmarks of the COVID-19 pandemic. On behalf of the Board, I would like to offer my sincere appreciation.

Finally I would like to gratefully acknowledge the strong contribution our former Chairman, Cobb Johnstone made to this Company ahead of his retirement due to ill health earlier this year.

It has been an honour to serve Aurelia Shareholders during this interim period and I would like to thank you

Our financial discipline has enabled the Board to re-invest back into the business and set Aurelia up for its next exciting chapter. For this reason, the Board decided not to pay a dividend this year, instead electing to accelerate towards growth.

Our investment focus has been to deploy cash into opportunities that will deliver superior returns to Shareholders. In FY21 we invested in both organic and inorganic growth, resulting in the successful acquisition and integration of the Dargues Mine and delivery of a remarkable 63% increase in Minerals Resources across the portfolio.

Aurelia enjoys an enviable organic growth pipeline - with Federation shaping up to be one of the most exciting polymetallic discoveries in recent times and Great Cobar emerging as a significant near mine, undeveloped copper resource.

sustainability initiatives as we aim to deliver business and stakeholder value across all aspects of the Company. FY21 saw us focus on lead indicators resulting in Aurelia significantly outperforming our lag safety and environmental targets. Whilst there is more work to do, these achievements reflect strong leadership and group wide discipline which is

a credit to the entire Aurelia team.

We are also pleased to introduce Shareholders to our 3-year Sustainability Plan, which outlines milestones the Company is committed to delivering against over coming years. With a focus on ensuring sustainability being embedded in our strategy, plans and business decisions, Aurelia's efforts in FY22 will be on continuous improvement in the areas of safety (including gender safety), wellbeing, environmental and community management, and responsible stewardship of natural resources.

for your support. I will step down as interim Chairman following the recent appointment of Peter Botten as Non-Executive Director. Peter has accepted the Board's invitation to assume the permanent role of Chairman. I extend a warm welcome to Peter.

Whilst we are living through uncertain times as COVID-19's delta strain remains active in our community - Aurelia's disciplined approach, together with talented people, strong and diverse asset base, robust balance sheet and exceptional growth pipeline, will serve us well.

Thank you for your interest and support.

Susan Corlett

Interim Independent

Non-Executive Chairman

4  ANNUAL REPORT 2021

MANAGING DIRECTOR'S REPORT

Looking back on FY21, I'm pleased to report our performance against our strategic priorities has significantly moved the Company towards our next growth stage.

Sustainable progression

I am proud to say the continued deployment of our Aurelia Metals - Safe Metals' framework has resulted in a 58% improvement in our Total Recordable Injury Frequency Rate. It is a fantastic achievement given the addition of another mine to the portfolio. Our commitment to safety has never been stronger in the face of the evolving COVID-19 pandemic. This year we continued to protect our people and communities with strict COVID-19 protocols, while wrapping comprehensive crisis management plans around a number of scenarios to protect

our business.

We are an organisation that aims to excel through our people and superior performance, and in FY21 we continued to invest in our most important asset. Aurelia conducted workshops across the business to develop leaders' capability to engage employees, lift performance and motivate discretionary effort. The workshops were also a vehicle to launch the Company's new Vision and Strategy, as well as a set of Values. Together they are a powerful means to align Aurelia people to our plan to deliver and create value.

Our maturing approach to sustainability has also delivered a significant uptick in our environmental performance with an 82% reduction in Reportable Environmental Incident Frequency Rate. Additional measures were also taken this year in the areas of workplace diversity and climate change, and I look forward to reporting progress in coming years.

Maximise existing infrastructure and assets

I am pleased to report a strong set of physical and financial results despite the ongoing external challenges. In FY21, Aurelia maintained its focus on generating cash, increasing margins and diversifying our asset base. Our efforts saw the Company meet or outperform guidance with records set at multiple levels.

Full year group production increased across all commodities, with the exception of copper. This result drove a record group gold-equivalent production of 181,000 ounces, at a Group All In Sustaining Cost of $1,337 per ounce.

With prior investment into the Peak processing facility and significant improvements in throughput across our mills, the Company's ability to generate cash from operations improved 24% to $136.6 million compared with $110.5 million in FY20.

Other records achieved were a 69% increase in Underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) at $168.9 million; and EBITDA at $154.1 million with a margin of 40%, again substantially improved from $103.4 million in FY20.

Directing capital to the highest return

Supported by our strong balance sheet and an equity raise, Aurelia acquired the Dargues Mine in December 2020 increasing our exposure to gold.

Our ability to generate cash throughout the year also put us in excellent shape to fund an extensive drilling program that achieved a tremendous 63% increase in our Group Mineral Resource tonnage.

The program continued to prove the high- grade polymetallic deposit at Federation as one of the most thrilling discoveries in recent times. With a Scoping Study complete, Feasibility Study underway and permitting well progressed, we anticipate early works from the beginning of FY22 which will be funded from operating cash flows.

Similarly, surface drilling results at Peak Mine indicated increased gold resources and significant copper potential at Great Cobar. A further increase in the Mineral Resource Estimate (MRE) tonnage was also achieved at Kairos. Aurelia moved to quickly initiate a Pre-Feasibility Study and progress Great Cobar to the next stage, together with community consultation on an Environmental Impact Statement.

Finally, drilling at the newly integrated Dargues Mine saw a 33% growth in Mineral Resource Estimate tonnage primarily in gold with more drilling planned in FY22 to expand and extend mine life.

All three prospects present organic growth at its best and have the potential to add significant value to a portfolio that is gold dominant, with high value base assets and copper ready.

Deliver long term value and returns growth

It has been a productive year with excellent gains made towards delivering in the short term, while investing for long term value.

I am disappointed our share price has not reflected our operational and financial performance. That said, I believe we are about

to enter an exciting time at Aurelia where we can grow returns to our Shareholders and share prosperity with everyone who has a stake in our success.

Through maximising our existing assets, prudently deploying investment capital and ensuring our growth is sustainable, we have laid the foundation for a strong future.

Dan Clifford

Managing Director

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